In a bid to increase credit limit to the housing developers and ensuring timely delivery of inventories to the home buyers Indian real estate developers have demanded hike in finance limit of the Non-Banking Financial Companies (NBFC). They said it would help developers to restart the stuck realty projects and deliver the units by end of this year — a big relief for home buyers — and the move would ensure smooth credit line for developers too.
Commenting upon the matter Anuj Puri, Chairman – ANAROCK Property Consultants told in a written statement, “For the industry at large, one of the most critical steps that this budget can take is to increase the finance limits for NBFCs. NBFCs constituted more than 50 per cent developer finance in 2018 as against 30 per cent in 2011. The NBFC crisis post the IL&FS default in September 2018 spelt doom for real estate players, and the ensuing fund crunch resulted in stalled projects all around. The Government must revive the sector by pumping in more money into NBFCs who lend to developers.” He said higher relief on housing loan rates would also serve the purpose as sales is picking up and any step in this regard would be like icing on the cake.
Standing in sync with the ANAROCK views; Rakesh Yadav, CMD, Antriksh India told Zee Business online, “The NBFCs have been the major lending institution for the real estate developers. Any hike in finance limit of the NBFC would be a great help from the Finance Minister Arun Jaitley, especially after the IL&FS Crisis that completely led down the morale of the real estate sector.” He said that lack of smooth credit line in the real estate sector is the major reason for all major ills like, stuck-up projects, late delivery, and higher unit price.